The Hindu Business Line : Bull domination

Bull dominated over Monday’s trading activity. The sentiment reading of the tradable counters turned to bullish. Bear move on Tuesday is likely to change the sentiment reading in their favour. On the contrary, the current sentiment reading is likely to be further strengthened with additional counter.

Nifty Futures

The October month contract opened with a bull gap of around 52 points from its previous close. The October month contract moved within a range of around 250 points. The October month contract closed with a gain of around 269 points from its previous close.

The long position in the October month contract remains intact. The long exit and short entry levels are placed quite far away from its last traded price. These levels are unlikely to be triggered during Tuesday’s trading.

Stock Futures

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The composition of the top-10 list had no changes. However, the ranking of the top-10 list had minor changes. Tata Power and ICICI Bank interchanged their positions.

Except IDBI, Infosys and Tata Power, all other counters are in uptrend.Tata Power is in sideways mode. Bull domination on Tuesday is likely to terminate IDBI and Infosys. Buying opportunities are likely to exist in IDBI, Tata Power and Infosys. There are no selling opportunities in the list. The best among the above is likely to be buying in Tata Power. This counter is in sideways mode. Bull move on Tuesday is likely to initiate a fresh uptrend in this counter.

Cash Segment

The composition and ranking of the top-10 list had minor changes. IDBI and BHEL went out from the top-10 tradable list. These positions are filled by SAIL and ONGC. Tata Power, ICICI Bank, TISCO and SBI moved one step down from their earlier positions. The short exit level of IDBI and long exit level of BHEL are placed 150.85 and 2225.95 respectively.

Infosys is a lone downtrend counterin the top-10 tradable list. Tata Power is in sideways mode. All other counters in the top-10 tradable list are in uptrend. Infosys is under threat for Tuesday’s trading activity. Buying opportunities are likely to exist in Infosys and Tata Power. Selling opportunities is likely to exist in Reliance Energy. The best is likely to be buying in Infosys. This counter is in downtrend. Bull move on Tuesday is likely to reverse the existing position in this counter.

(Note: All price levels refer to the absolute value of the shares traded on the NSE. There is risk of loss in trading.)

The author is a technical analyst and fund management consultant.